If you’re planning to invest in Orlando real estate, you’re putting yourself on a great path towards financial gain. Real estate makes a great investment because these are tangible assets that are likely to appreciate over time. You’ll also earn some great rental income, especially now in the Orlando market. Rents are going up, the population is increasing, and there’s a huge demand for well-maintained rental homes.
First-time Orlando investors are usually eager and excited. That’s good – you’ll need the adrenaline, especially in a market as competitive as this one.
You also have to remember that investing in rental property comes with a few challenges, headaches, and risks. These three tips for first time investors will help you avoid the expensive mistakes that a lot of new investors make.
1. Get to Know the Orlando Rental Market
Maybe you have an idea of what your Orlando rental property can earn every month. Did you get that number from the data provided by local property managers, or is it a number you came up with yourself?
New investors are often confused about how to price their rental property. Rental price is really market-driven. It doesn’t matter how much cash flow you’re after or what you’ll need to make your mortgage and tax payments. Evaluate the market thoroughly and check the prices for competing properties that are similar to yours.
Experienced Orlando investors do this before they even buy the property. Hopefully, you’re already aware of what your property will likely earn. Remember that vacancy is more expensive than anything else in real estate. So, don’t overprice your property. Get to know the market really well before you buy and before you attach a rental value to your property.
2. Keep Your Orlando Rental Home Well-Maintained
Maintenance costs are rising, which is difficult for those new investors who are trying to budget what it will cost to make emergency and routine repairs. While no one likes to spend money on repairs, it’s essential to keep your property well-maintained. This is the only way you’ll attract good tenants and continue increasing rents.
Investing in preventative maintenance is a great idea. It should be a priority, even if your home is new and in good shape. Deferred maintenance will only damage your home and drag down its value. It will also create frustrated tenants who feel like their landlord isn’t taking care of their responsibilities. When a tenant makes a maintenance request, respond to it right away, or at least let the tenants know when you’ll be able to take care of the problem.
You’ll need a good team of vendors and contractors to help you care for your property. This will be extremely valuable when you’re investing.
3. Work with an Experienced Orlando Property Manager
Unless you have the time, knowledge, and experience to manage an income-producing property on your own, hire a professional Orlando property manager.
You might think that with only one home in your portfolio, you can easily manage it on your own.
It’s possible you can. But remember – you’re an investor, not a landlord. If you’re hoping to earn as much as possible and leverage your current investment to grow your portfolio, you’ll need help. Find a company that can accurately price the home, market it, and screen for highly qualified Orlando tenants. Look for a management company that has good relationships with local vendors and has a reputation for helping owners earn more and spend less on their investment.
A local management company will also understand all the laws, requirements, and best practices in Orlando property management. You need local expertise when it comes to lease agreements, code compliance, and reporting. We’d like to tell you more about how we can help you. Working with new investors is one of our specialties, and we’d love to hear more about your investment goals. Please contact us at Park Avenue Property Management.